The Middletown Citizens Electric Rate Relief Act lowers the cap on electricity’s retail cost to 4 cents per kilowatt hour over the base rate, a reduction of 1-1/2 cents per kilowatt hour.

The borough is one of the few in the state that has its own electric department. It buys electricity wholesale and sells it to residents for a profit.

The borough used some profits from electricity sales to finance other municipal operations. To make up for that lost revenue, it will withdraw $2.6 million from its electric rate trust fund. The trust, with a balance of around $12 million, was established from a settlement agreement with Met-Ed, which used to sell the borough electricity.

It is difficult to pinpoint exactly how much the relief act will save borough electric customers because until now, rates have fluctuated each month, borough officials said. However, council member John Brubaker, who proposed the ordinance, said that residents can expect to see immediate relief in the amount of their bills. Customers can depend on receiving monthly electric bills with more consistent rates, borough officials said.

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